Supply and demand curve

Supply and demand curve

Supply and demand curve

Supply refers to the amount the producer (or market) can offer.
According to popular market economy theories, the demand and supply mechanism will allocate resources in the most efficient way possible. This mechanism (Figure 2), works in two ways: the higher the price, the lower the quantity consumers’ demand, and the higher the price, the higher the quantity producers supply.


Related Articles

Be the first to write a comment.

Leave a Reply

EPRS Logo
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.